Dogecoin gaining reputation for unlawful actions, Elliptic report says

by Cryptospacey

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Common meme cryptocurrency Dogecoin (DOGE) has more and more change into linked to a number of illicit actions akin to terrorism financing, Ponzi schemes, and baby intercourse abuse, in line with a new report by Elliptic.

The blockchain analytics firm revealed in its report that the meme coin popularized by Elon Musk had change into a preferred selection for dangerous actors to facilitate transactions within the thousands and thousands.

Whereas the overwhelming majority of this exercise consists of fraud, scams and Ponzi schemes, it additionally contains probably the most critical sorts of crime, together with terrorism financing and distributors of kid sexual abuse materials (CSAM).

In July 2021, Israel’s Nationwide Bureau for Counter Terror Financing issued a seizure order towards 84 crypto addresses believed to be related to the Hamas group. A kind of wallets contained $40,235 in Dogecoin.

Moreover, the analytics firm additionally found {that a} small however rising variety of CSAM distributors on the darknet and out of doors now obtain Bitcoin. Elliptics solely recognized $3000 in Dogecoin, which is a small quantity.

But it surely warned that this might characterize a rising “urge for food for felony actors to undertake a variety of crypto property to keep away from discover.”

Darknets accepting Dogecoin

A number of darknet markets and malware campaigns additionally settle for Dogecoin. Elliptic recognized darknet providers akin to Simply-Kill that also settle for Dogecoin whereas others now not settle for it.

Moreover terrorists, far rights extremist teams additionally seem to have taken a liking for cryptocurrencies, together with Dogecoin. These teams, far-rights weblog websites, information, and video sharing platforms, use Dogecoin to boost funds once they can’t use conventional strategies.

Infowars is one such web site. The far-right globalism-battling information web site has raised over $1,700 in Dogecoin.

This discovery is just like the revelations of the Monetary Motion Process Power final yr about far-rights teams utilizing cryptocurrencies akin to Bitcoin and privateness cash.

Nevertheless, Ponzi schemes, theft, and fraud seem like the largest illicit use of Dogecoin. Elliptic claims to have recognized over 50 instances the place criminals cashed out thousands and thousands of {dollars} in Dogecoin.

Common situations embrace the alleged theft of $119 million in Dogecoin related to a Turkish Ponzi scheme final yr. In 2020, the Chinese language authorities additionally seized greater than $20 million DOGE within the $6 billion PlusToken Ponzi scheme.

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